Google's chief business officer said the company plans to embed ads into AI agent shopping by letting artificial intelligence handle routine tasks while preserving the decision-making stage where users compare options and see sponsored offers.
Philipp Schindler stated on Alphabet's earnings call that users dislike the "grunt work" of shopping, which AI can automate, but they value discovery and comparison. He cited insurance shopping as an example, noting that Google can present multiple products with different premiums and deductibles alongside current discounts.
Google's Q3 revenue reached $127.58 billion, falling short of the $127.97 billion analyst consensus. Earnings per share came in at $2.12 versus the roughly $3.01 expected, with an $8.2 billion unrealized loss on the SpaceX investment accounting for much of the shortfall. Alphabet shares fell about 10% after hours.
The earnings reveal a core tension for Google. AI overviews have driven more searches than ever, but the company is not monetizing them at the same rate, a concern investors have raised about whether AI agents threaten Google's search advertising business.
Google has tested alternatives to traditional ads in AI mode, including showing travel offers during planning and clearly marked sponsored links inside AI-generated lists. Schindler expressed confidence that shopping decisions almost never have a single perfect solution, creating room for advertising even as automation expands.